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Chapter 13 Bankruptcy is a repayment plan that protects the debtor from collection action during the plan and discharges any unpaid balance of dischargeable debts at the end of the plan. The discharge in Chapter 13 covers some debts that cannot be discharged in Chapter 7. It is a powerful tool for debtors to regain control of their financial lives and to get a meaningful fresh start.
Debtors choose to file a repayment plan under Chapter 13 when
· they owe debts not dischargeable in Chapter 7 such as taxes, child support, marital property settlements
· they have liens that are larger than the value of the assets securing the debt
· they are behind on car or house payments
· their assets are worth more than the available exemptions
· they are repaying retirement fund loans not permitted in Chapter 7
To file Chapter 13, you must be
· an individual
· have a regular income greater than your reasonable living expenses; and
· have liquidated, unsecured debts not exceeding $336,900 and secured debts not exceeding $1,010,650.
Corporation and firms can not file for Chapter 13 Bankruptcy. And individuals can pay his debt in installments and the debtor can save his exempt and non exempt property. But before you could file for a Bankruptcy under Chapter 13 you need to consult some professional Walnut Creek Bankruptcy lawyer. He will help you know your options and will also allow you find if filing Bankruptcy is the only option to you. For more details you can log on to: www.korblaw.com